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Best overall brokerage for stocks?
Rank: Elder Joined: 7/11/2010 Posts: 5,040
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I come to disagree with the advice " invest an amount that you can afford to lose" With this mentality how will you grow to make your stock holdings large, ie big money. With this advice the best u can hope for is those dividends that you drink in the bar or buy a mbuzi for your friends. Go in hard, risk alot of money and plan for stocks to make you rich. I'm planning one day in the not so distant future dividends to cater to my annual living expenses... That will be money I can't afford to lose, and that's the plan. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Member Joined: 3/3/2016 Posts: 132
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Aguytrying wrote:I come to disagree with the advice " invest an amount that you can afford to lose"
With this mentality how will you grow to make your stock holdings large, ie big money. With this advice the best u can hope for is those dividends that you drink in the bar or buy a mbuzi for your friends.
Go in hard, risk alot of money and plan for stocks to make you rich. I'm planning one day in the not so distant future dividends to cater to my annual living expenses...
That will be money I can't afford to lose, and that's the plan. I think it's just meant as a reminder, especially for novice investors, that stocks can be highly volatile. It doesn't really apply to investors who've been through at least one or two full market cycles, because they know that. They understand diversification because of the high single security risk which "was obvious to everyone" about in retrospect after they plummet.
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Rank: Member Joined: 2/24/2015 Posts: 154 Location: Nairobi
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Plimsoul wrote:Aguytrying wrote:I come to disagree with the advice " invest an amount that you can afford to lose"
With this mentality how will you grow to make your stock holdings large, ie big money. With this advice the best u can hope for is those dividends that you drink in the bar or buy a mbuzi for your friends.
Go in hard, risk alot of money and plan for stocks to make you rich. I'm planning one day in the not so distant future dividends to cater to my annual living expenses...
That will be money I can't afford to lose, and that's the plan. I think it's just meant as a reminder, especially for novice investors, that stocks can be highly volatile. It doesn't really apply to investors who've been through at least one or two full market cycles, because they know that. They understand diversification because of the high single security risk which "was obvious to everyone" about in retrospect after they plummet. @plimsoul. Exactly. @aguytrying. You and I have a very different approach. I think hope is not the same thing as a plan. I hope my portfolio will perform well, but I plan for it to lose money. As a result, I have investments in stocks, but in other asset classes as well. I invest money for my children's education, for example, in bonds. I keep cash reserves for other expenses. I structure all of my investments, in aggregate, to generate satisfactory risk adjusted returns. What you're advocating, to me, is essentially gambling big on one asset class in the hope that the jackpot will be big. In my experience, you may get rich without managing risk, but you certainly won't stay that way.
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Rank: Member Joined: 5/14/2014 Posts: 289 Location: nairobi
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researchfirst wrote:Plimsoul wrote:Aguytrying wrote:I come to disagree with the advice " invest an amount that you can afford to lose"
With this mentality how will you grow to make your stock holdings large, ie big money. With this advice the best u can hope for is those dividends that you drink in the bar or buy a mbuzi for your friends.
Go in hard, risk alot of money and plan for stocks to make you rich. I'm planning one day in the not so distant future dividends to cater to my annual living expenses...
That will be money I can't afford to lose, and that's the plan. I think it's just meant as a reminder, especially for novice investors, that stocks can be highly volatile. It doesn't really apply to investors who've been through at least one or two full market cycles, because they know that. They understand diversification because of the high single security risk which "was obvious to everyone" about in retrospect after they plummet. @plimsoul. Exactly. @aguytrying. You and I have a very different approach. I think hope is not the same thing as a plan. I hope my portfolio will perform well, but I plan for it to lose money. As a result, I have investments in stocks, but in other asset classes as well. I invest money for my children's education, for example, in bonds. I keep cash reserves for other expenses. I structure all of my investments, in aggregate, to generate satisfactory risk adjusted returns. What you're advocating, to me, is essentially gambling big on one asset class in the hope that the jackpot will be big. In my experience, you may get rich without managing risk, but you certainly won't stay that way. @aguy s strategy should work because of the underlying business.forget stock market volatility I find satisfaction in owning great business,not trading them
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Rank: Chief Joined: 1/3/2007 Posts: 18,224 Location: Nairobi
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Aguytrying wrote:I come to disagree with the advice " invest an amount that you can afford to lose"
With this mentality how will you grow to make your stock holdings large, ie big money. With this advice the best u can hope for is those dividends that you drink in the bar or buy a mbuzi for your friends.
Go in hard, risk alot of money and plan for stocks to make you rich. I'm planning one day in the not so distant future dividends to cater to my annual living expenses...
That will be money I can't afford to lose, and that's the plan.  Warren Buffett's 2 Rules of Investing: 1. Never lose money. 2. Always follow Rule #1. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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researchfirst wrote:Plimsoul wrote:Aguytrying wrote:I come to disagree with the advice " invest an amount that you can afford to lose"
With this mentality how will you grow to make your stock holdings large, ie big money. With this advice the best u can hope for is those dividends that you drink in the bar or buy a mbuzi for your friends.
Go in hard, risk alot of money and plan for stocks to make you rich. I'm planning one day in the not so distant future dividends to cater to my annual living expenses...
That will be money I can't afford to lose, and that's the plan. I think it's just meant as a reminder, especially for novice investors, that stocks can be highly volatile. It doesn't really apply to investors who've been through at least one or two full market cycles, because they know that. They understand diversification because of the high single security risk which "was obvious to everyone" about in retrospect after they plummet. @plimsoul. Exactly. @aguytrying. You and I have a very different approach. I think hope is not the same thing as a plan. I hope my portfolio will perform well, but I plan for it to lose money. As a result, I have investments in stocks, but in other asset classes as well. I invest money for my children's education, for example, in bonds. I keep cash reserves for other expenses. I structure all of my investments, in aggregate, to generate satisfactory risk adjusted returns. What you're advocating, to me, is essentially gambling big on one asset class in the hope that the jackpot will be big. In my experience, you may get rich without managing risk, but you certainly won't stay that way. Only 1 approach can make money consistently and I go with @aguy's. When investing in stocks you go all in to make money. You plan to win, never to lose. Even cutting losses/stopping the bleeding is a tactic for winning. You make big bets on stocks that have a huge downside and a low downside and vice versa. If things don't work out, you stop the bleeding and get into a stock with better prospects. Most important part of the winning approach is to identify undervalued stocks. Wazuans do an excellent job eg the HF, Unga, KK, Insurance industry, KCB threads were on the mark. Not forgetting the Technical analysis by @hisah, @spt and others. Invest in stocks to win. If you plan to lose, you will surely lose. Life is short. Live passionately.
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